shloboe boe
Harare Bureau
ZIMBABWE’s economy is poised for significant growth in 2025 and 2026, outpacing the broader Sub-Saharan Africa (SSA) region, according to the latest projections from the World Bank.
The nation’s Gross Domestic Product (GDP) is expected to expand by 6,2 percent in 2025 and 4,8 percent in 2026, surpassing the Sub-Saharan African countries’ averages of 4,1 percent and 4,3 percent respectively.
The estimates are contained in the World Bank’s newly released annual Global Economic Prospects report and are within the range of Government’s own projections of two percent growth in 2024 and a forecast of six percent this year.
This optimistic outlook marks a substantial recovery from the modest 2 percent growth recorded in 2024, a year marred by the worst drought in over four decades.
The El Niño-induced drought severely impacted agricultural output, leading to a significant downturn in the sector.
Staple maize production plummeted by 72 percent during the 2023/24 season, necessitating the importation of approximately 1,4 million tonnes of grain to meet domestic demand.
The World Bank’s projections align closely with the Government’s forecasts, reflecting a shared confidence in the nation’s economic trajectory.
Finance, Economic Development and Investment Promotion Minister Professor Mthuli Ncube remains optimistic about the country’s economic prospects, maintaining a 6 percent growth forecast for 2025.
He attributes this anticipated rebound to a recovery in agriculture, bolstered by improved rainfall patterns, and enhanced electricity generation.
Prof Ncube, while acknowledging the challenges posed by delayed rains, has expressed confidence in achieving the growth target.
“If the weather patterns continue on this kind of trajectory, we should be able to achieve or at least get close to achieving the 6 percent target rate of growth this year,” he told The Herald this week.
The local economic resurgence is further bolstered by ongoing infrastructure investments aimed at driving long-term growth. The Government has prioritised projects in energy, transport, and water supply to create a conducive environment for economic activities.
Key initiatives include the expansion of the Hwange Thermal Power Station, which is expected to enhance electricity supply reliability, and the Beitbridge Border Post modernisation to facilitate trade.
Additionally, investments in irrigation systems are poised to mitigate the impact of erratic rainfall on agriculture. These infrastructure upgrades are not only expected to support immediate economic recovery but also lay the groundwork for sustained growth in the coming years.
Economist Gladys Shumbambiri-Mutsopotsi said the mining sector is a pivotal contributor to Zimbabwe’s economic resurgence.
She noted the sector’s resilience amid global commodity price fluctuations and local operational challenges, emphasising its steady expansion.
Ms Shumbambiri-Mutsopotsi also highlighted the importance of electricity generation, which saw a 22 percent growth, in supporting industrial activities and boosting investor confidence.
The tourism sector is also poised for a rebound, driven by a resurgence in international travel as global economies recover from stagnation.
“As more countries emerge from economic stagnation, international travel is set to rebound, benefiting nations like Zimbabwe with untapped tourism potential.”
However, the World Bank cautions that commodity exporters like Zimbabwe face risks from potential economic slowdowns in major markets such as China, which could adversely affect demand for minerals and metals.
Despite these potential challenges, Zimbabwe’s diversified economic strategy, focusing on revitalising agriculture, bolstering mining activities, and rejuvenating tourism, positions the country favourably for sustained growth.
The anticipated economic expansion in 2025 and 2026 not only signals a robust recovery from recent adversities but also sets the stage for Zimbabwe to outpace its regional counterparts in economic performance.
